US again clears China of cur­rency ma­nip­u­la­tion

Kuwait Times - - BUSINESS -

The US Trea­sury on Fri­day cleared China of keep­ing the yuan cheap for trade ad­van­tages, amid ac­cu­sa­tions by Repub­li­can pres­i­den­tial can­di­date Don­ald Trump that it ma­nip­u­lates the cur­rency. In a semi-an­nual re­view man­dated by Congress over fears US trade ri­vals ma­nip­u­late their cur­ren­cies to boost ex­ports, the Trea­sury said that al­though the yuan had fallen in the past year, this de­cline was driven by mar­ket pres­sures.

In­deed, it said the yuan, also called the ren­minbi (RMB), could have fallen more had Beijing not acted to avoid that. “China’s in­ter­ven­tion in for­eign ex­change mar­kets has sought to pre­vent a rapid RMB de­pre­ci­a­tion that would have had neg­a­tive con­se­quences for the Chi­nese and global economies,” the Trea­sury said in a re­port. But it added that China needs to con­tinue loos­en­ing its ex­change rate poli­cies and be more trans­par­ent about the mar­ket. “It is im­por­tant for China to con­tinue mar­ket-ori­ented ex­change rate re­form, al­low­ing for twoway flex­i­bil­ity of the RMB,” it said. In his fight against Hil­lary Clin­ton for the White House, Trump has re­peat­edly ac­cused China of keep­ing the yuan un­der­val­ued so as to pro­mote its ex­ports and make im­ports from the US more costly.

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.